The man who trades freedom for security does not deserve nor will he ever receive either. – Benjamin Franklin
YouTube Added: 19.03.2013
Related info:
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– Cyprus Parliament Rejects European Bailout Proposal: Calls Germany’s Bluff (ZeroHedge, March 19, 2013):
Just as we predicted yesterday, the Cyprus bailout vote has not passed parliament in a move that was merely there to force Germany’s bluff.
- CYPRUS BANK LEVY BILL DEFEATED WITH 36 VOTES AGAINST
- CYPRUS BANK LEVY BILL DEFEATED WITH 19 ABSTENTIONS
- CYPRUS PARLIAMENT VOTED IN SHOW OF HANDS IN NICOSIA
- ANASTASIADES FAILS TO SECURE VOTES FOR DEPOSIT LOSS BILL
What happens now, nobody knows. Prepare for a litany of very angry headlines out of the inner sanctum of Europe’s despotic chambers. Hopefully Pisani can explain it all.
– Europe’s Final Gambit: 20%-30% Haircut For Oligarchs To Force A Russian Bailout (ZeroHedge, March 19, 2013):
It now seems sure that the ongoing discussion in Cyprus’ government will see a “no” vote as the WSJ is reporting a rather stunning gamble by the Cypriots (and by Cypriots we mean European leaders) to force the Russians to bear the brunt of the cost of the bailout. The non-resigned Cypriot FinMin is heading to Russia to propose a deal that includes imposing a 20% to 30% levy on Russian-held deposits in Cypriot banks, which could cost them billions of euros. In exchange, Russia will be given equity in Cyprus’s future national gas company and some additional strategic benefits in the sector, while Russian investors would be given control of the board of directors at Cyprus’s banks. The apparent quid pro quo in this deal does nothing to hide the fact that private property was stolen and while pointing fingers just at the Russians may play well for PR purposes, it is described as “a long shot” as the Kremlin notes, “it’s practically impossible to talk without knowing details.”
…
The official said that Michalis Sarris, who is being accompanied by a delegation of businessmen, is going to propose a deal that includes imposing a 20% to 30% levy on Russian-held deposits in Cypriot banks, which could cost them billions of euros. In exchange, Russia will be given equity in Cyprus’s future national gas company and some additional strategic benefits in the sector, while Russian investors would be given control of the board of directors at Cyprus’s banks.
Read moreEurope’s Final Gambit: 20%-30% Haircut For Oligarchs To Force A Russian Bailout
Which is the best option for Cyprus actually, BUT then the banksters would be completely screwed and wiped out.
Also in the case of a default and devaluation investing in physical silver and gold would give you the best protection for your assets and their value.
Flashback:
– Venezuela Launches First Nuke In Currency Wars, Devalues Currency By 46%!
– Belarus Devalues Its Currency By 56% Overnight, Against Every Currency Out There:
Luckily for those who held their “money” in the form of gold and silver, they just got an instantaneous 56% value preservation and a relative boost in their purchasing power with just one central bank announcement.
– Belarus Central Bank Halts Sales Of Gold For Roubles
Got physical gold and silver (not stored in the banking system)?
– Daniel Hannan Urges Cyprus To “Default, Devalue, And Decouple” Itself Back To Growth (ZeroHedge, March 19, 2013):
“Either Cyprus is going to have to find the money to fund the bailout, or it’s going to have to leave the Euro – to default, devalue, and decouple,” is the cold hard truth that UK MEP Daniel Hannan explains in this brief clip. Neither of these paths, he goes on to say, is an easy one, but he believes “there is no doubt the second of them is the less painful – allowing Cyprus to price itself back into the market and start exporting its way back to growth again.”
There are no good outcomes for a country as indebted as Cyprus is, “but if I were a Cypriot member of Parliament, I would vote now to go back to an independent currency as the least painful of the various difficult options.” Hannan then makes a fantastic point, “in the rest of Europe, we have measured the cost of monetary union in unemployment, deflation, poverty, and emigration; in Cyprus that wasn’t enough, they have had to gouge the savers directly,” and so the Cypriots who claim to want to stay in the Euro can now quantify the cost of that shackle, as he reminds us that , “you don’t have to be a Russian oligarch to have EUR 100,000 in the bank,” as he concludes, “the really interesting question is – who’s next?”
Now that the precedent has been set (that governments can come after what is in your savings account) what country is safe?
– German Bankers Generously Offer Cypriots Helping Hand If They Transfer Deposits (ZeroHege, March 19, 2013):
For a mere 0.95% handling fee, the friendly German bankers are offering Cypriot depositors the opportunity to “take fast action and secure their deposits” with a rate between 3.0 and 4.5%. As Sigma Live reports, the German Advisory Bureau is approaching Cypriot firms, denouncing the incident and asking them to take responsible actions. While it would be a stretch perhaps to wonder if the plan all along was to strengthen German banks, it is of little doubt that depositors will be quick to move any and every bill of Euros in their bank accounts as soon as their government allows.
Read moreGerman Bankers Generously Offer Cypriots Helping Hand If They Transfer Deposits
– Test of anthrax vaccine in children gets tentative OK (Reuters, March 19, 2013):
A presidential ethics panel has opened the door to testing an anthrax vaccine on children as young as infants, bringing an angry response from critics who say the children would be guinea pigs in a study that would never help them and might harm them.
The report, however, released on Tuesday by the Presidential Commission for the Study of Bioethical Issues, said researchers would have to overcome numerous hurdles before launching an anthrax-vaccine trial in children. It now goes to Secretary of Health and Human Services Kathleen Sebelius, who will decide whether to take the steps the commission recommended.
Read moreTest Of Anthrax Vaccine In Children Gets Tentative OK By ‘Presidential Ethics Panel’
– UK Sends Planeload Of Cash To Its Cyprus Troops As A “Contingency Measure” (ZeroHedge, March 19, 2013):
We are presenting this Reuters story without any comment. None is necessary.
Britain said on Tuesday it had sent one million euros ($1.30 million) in cash to Cyprus aboard a military plane for its troops on the island in case cash machines and debit cards stop working.
“An RAF flight left for Cyprus this afternoon with €1M on board as a contingency measure to provide military personnel and their families with emergency loans in the event that cash machines and debit cards stop working completely,” the Ministry of Defence said in a statement.
“We will keep this under review and consider further shipments if required.”
British troops in Cyprus will be given the choice of having their monthly wages paid into British bank accounts rather than Cypriot ones in future, the statement added.
And some more from Sky:
– Is Bitcoin the New Safe-Haven Currency? Bitcoins Surge After Cyprus Bank Raid (Activist Post, March 19, 2013):
Is Bitcoin now a safe haven currency? It wasn’t long ago when it was considered merely an interesting crypto-currency to buy illegal drugs on Silk Road. Now, citizens all over Europe appear to be flocking to Bitcoin as the European finance vultures circle above.
Read moreIs Bitcoin the New Safe-Haven Currency? Bitcoins Surge After Cyprus Bank Raid
– JP Morgan Cleared Of Conspiracy “To Drive Down Silver Prices” (ZeroHedge, March 19, 2013):
JP Morgan Chase & Co won their case of a nationwide investors’ lawsuit accusing them of conspiring to drive down silver prices.
U.S. District Judge Robert Patterson in Manhattan said the investors, who bought and sold COMEX silver futures and options contracts, failed to show that JPMorgan manipulated prices, by creating long short positions that were not in synch with market events at the time period.
The judge acknowledged that the firm could influence prices, but said that it was not proven that the bank “intended to cause artificial prices to exist” and acted accordingly.
The plaintiffs had nearly 43 complaints filed from 2010-2011, which accused banks of profiteering in over $100,000,000 by illegally manipulating silver prices.
Read moreJPMorgan Cleared Of Conspiracy ‘To Drive Down Silver Prices’
MUST-SEE!
– EU Is Blackmailing Cyprus Government: Orphanides (Bloomberg, March 19, 2013):
March 19 (Bloomberg) — Anthanasios Orphanides, former Central Bank of Cyprus Governor, considers the proposed Cyprus bank depositor tax a form of blackmail against the government of Cyprus. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”
– Cyprus Now Set To Vote Against Bailout, Ruling Party To Abstain Guaranteeing Failure To Ratify “Bail-In” (ZeroHedge, March 19, 2013):
It appears that Cyprus is now ready to escalate, following news now coming fast and furious, that the Parliament will go ahead and vote after all, but not in a good way as even the Cypriot ruling party, formerly the only party willing to vote Yes on the Bail-In, would abstain according to Dow Jones, which means there is no support at all in the Cypriot parliament for the deposit haircut proposal.
We can only pray that Bob Pisani explains what happens next because neither we, nor anyone else, has any idea what comes now.
– Cyprus Finance Minister Resigns, President Refuses To Accept Resignation (ZeroHedge, March 19, 2013):
Update: President Anastasiades rejects FinMin Sarris’ resignation. Unclear what happens next.Things just took a turn for the much worse following this news from Market News:
- CYPRUS FINANCE MINISTER SUBMITS RESIGNATION – SOURCES
- MARKET NEWS CITES SOURCES ON CYPRUS FINANCE MINISTER
Unclear if German FinMin Schauble will promptly step in to fill this latest sovereign vacancy.
Desperation time for the NY Fed to preserve the market green and give the impression that all is under control, when the rats are now actively leaving the Titanic.
– Cyprus Vote Delayed Once More As Latest Haircut Proposal Proves Insufficient For Parliament Support (ZeroHedge, March 19, 2013):
As we suggested, the ongoing wranglings in Cypriot political quarters has resulted in more changes. The President just proposed the ‘levy’ on deposits begin at EUR 20,000 just hours ahead of today’s planned vote.
- CYPRUS REVISED BILL SEES NO LEVY ON DEPOSITS UP TO EU20,000
However, it is still theft of private property which appears to be the philosophical stumbling block for the parties involved and therefore today’s vote appears to be delayed:
- ANASTASIADES TO MEET PARTY LEADERS 9 AM TOMORROW: SPOKESPERSON
- CYPRUS PARLIAMENT BANK-LEVY VOTE MAY HAPPEN TOMORROW, CYBC SAYS
We patiently await news that the stock exchange and banks will be closed the whole week…
– Cyprus President Says Parliament Will Still Reject Bailout Plan, “Making Other Plans” (ZeroHedge, March 19, 2013):
So much for the credibility of Reuters’ Greek FinMin “unnamed” source. After the newswire presented the latest Eurogroup statement as if it was one where all deposits under €100,000 will be tax exempt, which was not the case, CNA reported a little while ago that the government has submitted a revised bill according to which only deposits under €20,000 would be exempt, and everything between €20K and €100K would still see the previous 6.75% levy. The parliamentary economic committee would discuss the bill ahead of plenary a debate scheduled for 6 p.m. Cyprus time. However, now as MarketNews reports, that is likely moot.
- CYPRUS PRESIDENT: PARLIAMENT BELIEVES BAILOUT PLAN UNJUST, GOVERNMENT MAKING OTHER PLANS.
- CYPRUS PRESIDENT: PARLIAMENT WILL REJECT BAILOUT PLAN –MNI
Amusingly enough, this echoes what Russia’s former FinMin Alexei Kudrin just said, who added fuel to the fire:
- KUDRIN SAYS CYPRIOT TAX WON’T PASS, GOVT COALITION IS CRUMBLING
Of course, as we said nearly a day ago, if there is no consensus on the term of the bail-in, it is assured that there will be no vote today either, and possibly none tomorrow, and so on, which means that with both banks and stock markets closed through Friday, Cyprus may end up in permanent stasis indefinitely.
Alternatively, parliament may just vote, reject the bailout, tipping the country into bankruptcy, forcing it to exit the Eurozone, and finally pushing Europe beyond the Rubicon. From a somewhat more credible Reuters:
Read moreCyprus President Says Parliament Will Still Reject Bailout Plan, ‘Making Other Plans’
Infinite Unknown reader R. S. donated € 10.
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– Eurogroup Folds: Tells Cyprus To “Safeguard” Depositors Under €100,000 Euros; Angry Russians To Get Even Angrier (ZeroHedge, March 18, 2013):
Reuters headlines crossing the closing tape, supposedly out of a (very credible) Greek source, according to whom the Eurogroup will give Cyprus more flexibility on bank levy, and that Cyprus should safeguard depositors under €100,000. Well, at least they were not kidding with the whole plan. This was not unexpected – as we tweeted last night:
Quite possible that before morning Cyprus will be giving free money to those with under EUR100,000 in deposits
— zerohedge (@zerohedge) March 17, 2013
And while after all this, it is perfectly obvious that ordinary Cypriots just can’t wait to start depositing money again with their local friendly bank, there are two very key questions which remain woefully unanswered:
No Memory: Barack Obama burst onto the national political scene 20 years after graduating from Columbia College in 1983. None of the 25 Israelis who graduated with him that year remembers the future president.
– Barack Obama’s Israeli Classmates Don’t Remember Him From Columbia (The Jewish Daily FORWARD, March 16, 2013)
Barack Obama during his law school years. His two years as at Columbia, says classmate Len Rosen, was a ‘bleak time.’
– Obama’s Israeli Columbia classmates don’t recall the young president (Haaretz, March 18, 2013):
Among those Israelis vying for the attention of Barack Obama as he prepares for his visit here next week, one fairly large, yet little-known group can claim a special long-standing connection to the U.S. president: We were his classmates in the Columbia University undergraduate class of 1983.
As of the latest count, there are close to 25 of us living here in Israel, some making the move close to 30 years ago, right after graduation, others pretty fresh off the boat. But on average, most have been here 15-20 years.
Read moreBarack Obama’s 25 Israeli COLUMBIA Classmates Don’t Remember Him!
– Iraq war costs U.S. more than $2 trillion: study (Reuters, March 14, 2013):
The U.S. war in Iraq has cost $1.7 trillion with an additional $490 billion in benefits owed to war veterans, expenses that could grow to more than $6 trillion over the next four decades counting interest, a study released on Thursday said.
The war has killed at least 134,000 Iraqi civilians and may have contributed to the deaths of as many as four times that number, according to the Costs of War Project by the Watson Institute for International Studies at Brown University.
When security forces, insurgents, journalists and humanitarian workers were included, the war’s death toll rose to an estimated 176,000 to 189,000, the study said.
The report, the work of about 30 academics and experts, was published in advance of the 10th anniversary of the U.S.-led invasion of Iraq on March 19, 2003.
Read moreIraq War Costs U.S. More Than $2 TRILLION, Could Grow To More Than $6 TRILLION
– The Great Cyprus Bank Robbery Shows That No Bank Account, No Retirement Fund And No Stock Portfolio Is Safe (Economic Collapse, March 18, 2013):
The global elite have now proven that when the chips are down they are going to go after any big pile of money that they think they can get their hands on. That means that no bank account, no retirement fund and no stock portfolio on earth is safe. Up until now, most people assumed that private bank accounts were untouchable and that deposit insurance actually meant something. Now we see that there is no pile of money that is considered “off limits” by the global elite and deposit insurance means absolutely nothing. The number one thing that any financial system depends on is faith. If people do not have faith in the safety and stability of a financial system, it will not work. Well, the people that rule the world have just taken a sledgehammer to the trust that we all had in the global financial system. They have broken the unwritten social contract that global banking depends on. So now we will see a run on the banks, and this will not just be limited to a few countries in southern Europe. Rather, this will be worldwide in scope. Yoda may have put it this way: “Begun, the global bank run has.” All over the world, frightened people are going to start pulling money out of the banks. A lot of that money will go into gold, silver and other hard assets. And as money starts coming out of the banks, this could cause many of the large banks that have been teetering on the edge of disaster to finally collapse.
Many of you may not believe that they would ever come after bank accounts, retirement funds or stock portfolios in the United States.
Many of you may be entirely convinced that the Great Cyprus Bank Robbery could never happen in America.
Well, where do you think this whole plan was dreamed up?
– States to feds: Hands off our guns (The Hill, March 17, 2013):
A growing number of states are moving forward with legislation to exempt them from new federal gun controls and, in some cases, brand as criminals anyone who tries to enforce them.
While many of the bills are considered symbolic or appear doomed to fail, the legislative explosion reflects a backlash against legislative and regulatory efforts in Washington to tamp down on gun violence.
As of this week, at least 28 states had taken up consideration of gun bills this year, according to new data compiled by the National Conference of State Legislatures. More than 70 bills have been put forward in all.
The burst of activity comes as the Obama administration and Congress pursue a series of gun control measures in the wake of December’s shooting massacre in Connecticut, which left 20 schoolchildren and six adults dead.
– Former US Treasury Official – US Financial System To Collapse (King World News, March 16, 2013):
Today a former Assistant Secretary of the US Treasury warned King World News, “This type of situation is extremely dangerous. The world has never seen it before.” Former Assistant of the US Treasury, Dr. Paul Craig Roberts, also told King World News that JP Morgan now threatens the stability of the entire global financial system. And if the Fed loses control and we collapse, “Nothing and no one would be safe anywhere.”
…
First Cyprus has to make sure Putin’s ‘KGB Money’ has left the country, so that only the sheeple get screwed and not the Russian bear …
.. or have they finally realized what will happen AFTER the ‘haircut’?:
– Will Russia Kill The Cyprus Bailout?
– Cyprus “Bank Holiday” Gets Another Extension, Bank Reopening Now Set For Thursday (ZeroHedge, March 18, 2013):
What was initially a single-day Bank Holiday has now morphed into three days as the farce that is the wealth tax in Cyprus will now keep the citizenry from their money until Thursday according to the latest from the Central Bank…
- *CYPRUS CENTRAL BANK SAYS BANKS TO BE CLOSED UNTIL THURSDAY: AP
Which begs the question “Which Thursday?”
Via AP,
Cypriot central bank: Banks will remain closed until Thursday amid talks on savings seizure.
– Will Russia Kill The Cyprus Bailout? (ZeroHedge, March 18, 2013):
While hope appears to still be alive that the Cypriot government will hand over their natural resources to wealthy Russia (or Gazpromia) and all depositors (Russians and Cypriots alike will be saved), we suspect there is a much bigger threat from Russia that has not been discussed. As Monument Securities’ Marc Ostwald notes “there’s a 50/50 chance Cypriot bailout fails because of the ‘massive danger’ a large amount of Russian cash flees Cyprus following deposit tax plans.” Russia has ~$60 billion exposure to Cyprus, including loans to companies registered in the country and after the haircut 90% of Russian deposits will still be free to leave the country if the levy is approved.The critical point is that, should this occur (such a large outflow of Russian cash – dwarfing in fact the size of the bailout package itself) it is hard to see how the Cypriot banking system could survive (even with the assistance of the ECB’s ELA). Russia’s Finance Minister Siluanov expressed disappointment that Russia was not involved in the deal and it is clear that should those outflows leave Cyprus, they are unlikely to end up in other European nation banks.
It seems the pre-emptive contagion and anxiety of this ‘levy’ have only just begun.
